Google acquires video compression specialist

Google has acquired video compression technology company On2 Technologies for US$106m (€78m). The deal is expected to close later this year.

On2 provides compression technologies to deliver video content for desktop and mobile applications. Customers include Adobe, Nokia, Sony and Brightcove.

Google has not unveiled its plans for On2’s technology, beyond saying that it is “committed to innovation in video quality on the web, and we believe that On2 Technologies’ team and technology will help us further that goal”.

On2’s VP7 and VP8 video codecs are seen as possible rivals to H.264. On2 has claimed that VP7 provides better quality than H.264 at the same bitrate.